Down Payment Source (Partner A Share)100% Partner A ($45,000)
Total Ownership Duration36 Months (3.0 Yrs)
Monthly Carrying Cost (Mortgage + HOA + Utils)$2,850/mo
Partner A Full-Pay Months18 Months ($51,300)
Partner B Full-Pay Months18 Months ($51,300)
Partner A Cumulative In
$96,300
Down: $45,000 + Bills: $51,300
Partner B Cumulative In
$51,300
Down: $0 + Bills: $51,300
Equity Allocation PhilosophiesSelect Active Model
Equitable Restitution
Down Payment Return + 50/50 Split
Original capital returned off the top to who funded it, remaining net appreciation split 50/50.
Partner A Net Payout$94,950
Partner B Net Payout$49,950
True Cash Pro-Rata
Pro-Rata Contribution
Net equity distributed strictly based on cumulative dollar contributions (Down Payment + Carrying Costs).
Partner A Net Payout$105,820
Partner B Net Payout$39,080
Deed Default
50 / 50 Legal Title Split
Presumes gift of equity or equal joint tenancy regardless of who provided initial cash or carried bills.
Partner A Net Payout$72,450
Partner B Net Payout$72,450
Active Settlement Basis:Model 1 (Down Payment Reimbursement + 50/50 Net Appreciation) yields $94,950 to Partner A and $49,950 to Partner B on a $144,900 net partition basis.
Partner B Buyout Cash Required (To Pay Partner A)
$94,950
New Refinance Loan Amount (Payoff + Equity)
$452,950
Estimated New Monthly P&I (At 6.875% 30-Yr Fixed)
$2,974 / mo
Partner B Solo Income & DTI Analysis
Gross Monthly: $7,400
Front-End Housing DTI: 40.2% (Conventional limit typically ≤ 45%)
Status: Feasible with Approved Underwriting
Gross Sales Price
$535,000
Estimated Broker & Escrow Transfer Fees (6.0%)
-$32,100
Lender Mortgage Payoff
-$358,000
Net Cash Distributed at Escrow
$144,900
Settlement Check to Partner A
$94,950
Settlement Check to Partner B
$49,950
Critical Legal Risk: The Quitclaim Deed Trap
Signing a Quitclaim Deed removes a partner from the title (ownership) but does NOT release them from the Promissory Note (mortgage debt). The departing partner remains 100% legally liable to the lender if the staying partner misses payments or defaults.
Mortgage Release Mechanism
Requirement: Full Cash-Out Refinance or Formal Novation / Loan Release from the mortgage servicer before deed signing.
Nevada / State Transfer Tax Exemption
NRS 375.090: Property transfer between co-owners without consideration can qualify for specific transfer tax exemptions with notarized settlement covenants.
Official Separation Term Sheet Preview:
Why Divorce Rules Don't Apply
Unmarried couples are treated under real property partition and contract law rather than family court equitable distribution statutes. Without a cohabitation agreement, courts default to deeds unless tracing evidence proves intent.
Tracing Down Payment Capital
When one partner scrapes together 100% of the initial capital ($45k in the Las Vegas case), equity restitution models credit that initial principal back before dividing market appreciation.
Carrying Cost Shift Forensics
Job losses or career transitions often result in one partner carrying all bills for extended periods. Tracking total cumulative cash-in preserves transparency and avoids bitter post-separation disputes.